New York blockchain startup Blockstack reported on ongoing work on a new distributed Protocol called Stacks, which is used hashevua hashrate of bitcoin in combination with the mechanism of the Proof-of-Burn (proof of burning — PoB).
Presentation of the Stacks was held in January at the event organized by startup in Hong Kong.
Explanation of the principle of the new consensus algorithm is also available in a video posted lead developer of the project, Jude Nelson.
For processing blocks Stacks uses the underlying mechanism of bitcoin Proof-of-Work (PoW) and Proof-of-Burn, however, as noted by Nelson in the future, the chain will gradually withdraw from PoW. According to him, PoW used to avoid the attack 51%, and that the security offered by the native bitcoin – optimal at this stage the decision.
“Instead of spending on electricity and iron, the participants of the consensus Proof-of-Burn provable way to destroy (burn) their own bitcoins. Each participant that leads the competition for the writing of the next block, need to burn a certain number of tokens PoW”, — said the developer.
The probability of finding the next block increases depending on the number of bitcoins burned, and the winner collects the transaction fee and receives a reward in tokens Stacks.
At this stage the PoW-bitcoin 95% provides Hasrat network, but this can be adjusted in the future to reduce dependence on the BTC chain. Blocks Stacks are using a mechanism called “cryptographic pairings”, involving a random probability distribution. If the party has burnt a large number of bitcoins but did not receive awards, these losses can be compared with the cost of electricity, which are miners in the bitcoin network, added Jude Nelson.
“It is important to note that the burnt coins are not lost in vain – they improve the quality of the network as are used to calculate quotas combustion”, thereby helping to prevent attacks”, — added the developer.
At the moment the developers for review are two proposals for improving network Stacks (SIPs).
Blockstack startup was founded in 2013 and originally called Onename. The project, which is also known for his work on the decentralized Internet, has managed to attract investment from well-known representatives of the blockchain-industry and venture capital companies, including Union Square Ventures, Digital Currency Group and Version One.